Agenda, decisions and minutes

The Minutes of meeting of held on 1 February 2023 were agreed as an accurate record.

The Minutes of meeting of held on 1 February 2023 were agreed as an accurate record.

None.

None.

It was MOVED, SECONDED, and RESOLVED that Mayor and Cabinet noted the officer’s response to the Housing Select Committee's referral, as set in the report, and oral presentation by the Chair of Housing Select Committee, and took those into consideration when making their decision.  Mayor and Cabinet's decision, the officer comments in the report, and oral presentation by the Chair of Housing Select Committee will be reported back to the Committee.

The Mayor and Cabinet noted the following:

a)             Referral made on behalf of the Housing Select Committee:

·                That the Housing Select Committee considered a report on Housing Revenue Account (HRA) - Rent Setting at its meeting on 5 January 2023, and noted:

o        The forecast rent, service charge, garage and heating and hot water charge changes for Lewisham Council Dwellings and garages in 2023/24, including resident feedback on the proposals.

o        A statement that the Mayor and Cabinet would be recommending to the Council to make the to increase the rent by 7%.  The potential average service, heating and hot water charge changes were contained in the Regenter B3 & Lewisham Homes Service charge reports 2023/24. The proposal was for an increase of £2.32pw or 7.0% for leaseholders and £1.24pw or 7% for tenants in the Lewisham Homes areas, and an increase of £0.93pw or 13.6% for the Brockley Regenter B3 area for tenants and an increase of £2.19pw or 13.6% for leaseholders.

·                That the Housing Select Committee considered an officer’s report on the matter, and acknowledged:

o        That the benefit of any reduction in service charges would principally affect leaseholders and those tenants not on housing benefit because those tenants on housing benefit were likely to have their service charges paid in full.

o        That the reduction in service charge would benefit about 70% of Regenter B3 residents, and therefore accepted that Regenta B3 residents’ service charges were less than Lewisham homes.  Neverthless, the 13.6% increase in service charge was in consideration. Therefore, it would be inequitable to recognise the impact of the cost of living crisis for Lewisham Homes tenants by charging less than the inflation rate, and not doing the same for Regenta. 

·                That prior to submitting the the proposal to full Council, the Housing Select Committee was recommending that the Mayor and Cabinet should:

o        Note that it would be inequitable for the Council to charge one group of residents an increase below inflation (Lewisham Homes) and the other not (Regenter B3).

o        Review the proposal to pass on in full the service charge increase in line with RPI + 1% for Regenter B3 tenants.

o        Consider if some dispensation could be made to assist Regenter B3 tenants given the Cost-of-Living crisis.

·                That the Housing Select Committee made its recommendations in the full knowledge:

o      That there would financial implications, in that the Council would be required to ensure the HRA would not be in deficit. 

o      That Lewisham homes and Regenra occupiers would have budgeted for service charges in previous years.  Nonetheless, considering this fiannancial year’s cost of living crisis, the Council should demonstrate that it had listened to Regenter B3 tenants and leaseholders, and take note of consultation responses by setting service charges at the same level as the Lewisham Homes service charges.

b)             A response by the Cabinet Member of Housing Management and Homelessness

that the Mayor and Cabinet should proceed with the proposal as outlined in the report, and she made  ...  view the full minutes text for item 3.

It was MOVED, SECONDED and RESOLVED that having considered the views of those consulted on the budget, and subject to consideration of the outcome of consultation with business ratepayers and subject to proper process, as required, the Mayor and Cabinet:

General Fund Revenue Budget

1. noted and asked Council to note the projected overall variance after the use of corporate provisions and reserves of £9.6m (or 3.9%) against the agreed 2022/23 revenue budget of £248.610m as set out in section 6 of the report and that any year-end overspend would be met from corporate provisions and reserves;

2. endorsed and asked Council to endorse the budget cut reduction measures of £12.587m as per the Mayor and Cabinet meeting of the 7 December 2022, as set out in section 6 of the report and summarised in Appendix Y1 and Y2;

3. agreed and asked Council to agree the allocation of £43.848m of resources from the corporate risks and pressures, social care precept, new homes bonus, social care grant, ASC market sustainability and improvement fund and services grant in 2023/24 to be invested in funding quantified budget pressures and opportunities, both recurring and once-off as set out in section 6;

4. agreed to recommend to Council that a General Fund Budget Requirement of £263.679m for 2023/24 be approved;

5. asked Council to agree to a 4.99% increase in Lewisham’s Council Tax element. This would result in a Band D equivalent Council Tax level of £1,492.13 for Lewisham’s services and £1,926.27 overall. This represents an overall increase in Council Tax for 2022/23 of 6.02% and is subject to the GLA precept for 2023/24 being increased by £38.55 (i.e. 9.74%) from £395.59 to £434.14, in line with the GLA’s draft budget proposals;

6. noted the final settlement figure for 2023/24 had not yet been announced and delegated authority to the Executive Director for Corporate Resources to include any change to the provisional settlement of £131,105,977 in the report for Council with any difference covered from provisions and reserves as necessary;

7. noted the provisional and estimated precept and levies from the GLA and other bodies as detailed in Appendix Y6 and delegated authority to the Executive Director for Corporate Resources to include any changes to these in the report for Council with any difference covered from provisions and reserves as necessary;

8. noted and asked Council to note the Council Tax Ready Reckoner which for illustrative purposes sets out the Band D equivalent Council Tax at various levels of increase. This was explained in section 6 of the report and was set out in more detail in Appendix Y4;

9. asked that the Executive Director for Corporate Resources issues cash limits to all Directorates once the 2023/24 Revenue Budget was agreed;

10. considered, and asked Council to consider, the Section 25 Statement from the Chief Finance Officer. This was attached at Appendix Y5;

11. agreed and asked Council to agree the draft statutory calculations for 2023/24 as set out at Appendix Y6;

12.  ...  view the full decision text for item 4.

The Mayor and Cabinet considered an open officer report, and a presentation by Councillor Amanda De Ryk, Cabinet Member for Financial and Strategy.

It was MOVED, SECONDED and RESOLVED that having considered the views of those consulted on the budget, and subject to consideration of the outcome of consultation with business ratepayers and subject to proper process, as required, the Mayor and Cabinet:

General Fund Revenue Budget

1. noted and asked Council to note the projected overall variance after the use of corporate provisions and reserves of £9.6m (or 3.9%) against the agreed 2022/23 revenue budget of £248.610m as set out in section 6 of the report and that any year-end overspend would be met from corporate provisions and reserves;

2. endorsed and asked Council to endorse the budget cut reduction measures of £12.587m as per the Mayor and Cabinet meeting of the 7 December 2022, as set out in section 6 of the report and summarised in Appendix Y1 and Y2;

3. agreed and asked Council to agree the allocation of £43.848m of resources from the corporate risks and pressures, social care precept, new homes bonus, social care grant, ASC market sustainability and improvement fund and services grant in 2023/24 to be invested in funding quantified budget pressures and opportunities, both recurring and once-off as set out in section 6;

4. agreed to recommend to Council that a General Fund Budget Requirement of £263.679m for 2023/24 be approved;

5. asked Council to agree to a 4.99% increase in Lewisham’s Council Tax element. This would result in a Band D equivalent Council Tax level of £1,492.13 for Lewisham’s services and £1,926.27 overall. This represents an overall increase in Council Tax for 2022/23 of 6.02% and is subject to the GLA precept for 2023/24 being increased by £38.55 (i.e. 9.74%) from £395.59 to £434.14, in line with the GLA’s draft budget proposals;

6. noted the final settlement figure for 2023/24 had not yet been announced and delegated authority to the Executive Director for Corporate Resources to include any change to the provisional settlement of £131,105,977 in the report for Council with any difference covered from provisions and reserves as necessary;

7. noted the provisional and estimated precept and levies from the GLA and other bodies as detailed in Appendix Y6 and delegated authority to the Executive Director for Corporate Resources to include any changes to these in the report for Council with any difference covered from provisions and reserves as necessary;

8. noted and asked Council to note the Council Tax Ready Reckoner which for illustrative purposes sets out the Band D equivalent Council Tax at various levels of increase. This was explained in section 6 of the report and was set out in more detail in Appendix Y4;

9. asked that the Executive Director for Corporate Resources issues cash limits to all Directorates once the 2023/24 Revenue Budget was agreed;

10. considered, and asked Council to consider, the Section 25 Statement from the Chief Finance Officer. This was attached  ...  view the full minutes text for item 4.